Acciona Sa

Good morning, ladies and gentlemen. Welcome to the ACCIONA's 2025 results presentation. Let me first introduce my colleagues on the table. To my left, Arantxa Espeleta, CEO of ACCIONA Energía. To her left, Raimundo Fernández Cuesta, Chief Financial Sustainability Officer at ACCIONA Energía. To my right, Jose Angel Tejero, Chief Operating Officer at ACCIONA. And to his right, Jose Entrecanales, CFSO, Chief Finance and Sustainability Officer of ACCIONA. Before reviewing the performance of each division, let me briefly frame the environment in which we're operating. It is a volatile and fragmented context with shifting trade dynamics and technological anxiety. Governments continue to prioritize energy security, climate adaptation, and investment in critical infrastructure, which translate into a stronger, more investable pipeline across a core business. Infrastructure, including energy, of course, is no longer about development, only about development. It has become a cornerstone of competitiveness and resilience. Energy security, cost, and availability are the main constraints to industrial and technological development, while water and transport are critical in helping societies withstand climate-related disruptions and sustain growth. This is not a cyclical rebound but a structural shift. rapid urbanization accelerating electrification digitalization and the renewal renewal of aging assets are converting are converging into what may be described as a global infrastructure super cycle estimates suggest that closing the global infrastructure gap will require several trillion dollars per year through 2040 across our main strategic segments, energy, transport, water and social infrastructure. At the same time, public budgets are constrained while private capital continues to seek long-duration de-risked opportunities supporting infrastructure as a mature and attractive asset class. ACCIONA is one of the few players with an end-to-end platform spanning development, engineering, construction, operation and long-term ownership across multiple infrastructure and energy solutions. This is already translating into strong results and record backlog visibility. 2025 was a good year where we achieved a record EBITDA of 3.2 billion, representing a 31% year-on-year increase and exceeding the 2.7 to 3 billion target range set at the beginning of the year. This was driven primarily by a very strong performance of Nordics, together with a solid contribution from our infrastructure division and the successful execution of our asset rotation strategy. In this regard, Acción Energía continues to be a structural pillar of the group, generating EBITDA of over 1.5 billion. Our infrastructure aggregate aggregated backlog exceeds 120 billion, with a particularly strong increase in future concessions driven by managed lanes in the US and is expected to grow further in the coming months following the pre award of a 35 year water sanitation concession in Brazil. In energy, fundamentals remain supportive electricity demand is right is rising energy security is now a political priority and what was once a green premium is increasingly becoming a green discount as renewables combined lower LCOE, levelized cost of energy, and less fuel price volatility than fossil generation in many markets. Acciona Energía has an approximately 22 gigawatt pipeline, while Nordex reached an all-time high backlog of 16 billion euros. positioning the group to capture demand selectively and profitably while providing a clear example of how structural demand is translating into tangible results. They're saying demand for wind continues to be structurally supported by electrification, raising global power consumption, repairing mature markets, and the growing strategic imperative for secure, locally sourced, and independent energy supply, which more than offsets somewhat weaker climate policies, particularly in the U.S. and the numbers back it up global wind turbine turbine order intake reached 215 gigawatts in 2025 which is the second highest level ever recorded in this context nordex is today the undisputed leader in europe with almost 50% market share and the second largest global wind turbine manufacturer outside China. But let's not forget, Chinese competition is harsh and not always playing by the same rulebook than European or Western manufacturers. We need to bear that in mind when protecting and promoting our few industrial champions those structural tailwinds continue to support our renewables platform acciona energia in 2025 we met our ebitda target for the year and delivered strong progress in value crystallization with asset rotation transactions totaling 3.2 billion euros and approximately 900 million in capital gains since we launched our rotation program in 2024. electricity demand is increasing well above historical averages driven by electrification data centers, artificial intelligence, electric mobility, and the reshoring of industrial activity. Renewables are indeed the cheapest and quickest to deploy source of new power in many markets. improving storage economics, are expanding the bankability of hybrid solutions and supporting more dispatchable renewable energy, reinforcing energy security and long-term investment effectiveness. This momentum is translating into tangible progress across our pipeline. We secured awards in PPA auctions in the Philippines and Italy. We reached financial close on two wind projects in South Africa with strong returns and improving battery economics enabled an attractive large-scale storage project in Chile. Beyond storage, we are actively advancing opportunities in repowering and data centers, strengthening the quality and optionality of our development pipeline and as always prioritizing profitable growth. Despite the combination of extraordinary effects, including weaker than expected resource, some COD delays and the accelerated execution of our asset rotation, which resulted in a lower EBITDA contribution from the assets sold during the year. Overall, our energy business performance was resilient and we strengthened our portfolio quality, the visibility of our results while the leveraging and maintaining our credit ratings. Looking ahead, our strategy continues to evolve from capacity build up to a more selective growth strategy. 1.3 gigawatts of projects already are committed until the end of 2027 while crystallizing value through asset rotation. Turning into infrastructure, population growth, as I was saying, urbanization, decarbonization, and aging assets in general continue to drive demand across transport, water, and social infrastructure. In this environment, the market favors integrated, technically-led partners with proven global execution capacity, rigorous risk control, and balance sheet strength. Acciona Infrastructuras performed strongly in 2025 with the largest project pipeline in its history. Construction maintains solid profitability with margins between 6% and 7% and around 80% of the order book with risk mitigation clauses supporting our healthy outlook. We achieved key milestones across our priority markets. as in north america we reached the financial close of the sr 400 managed lanes project in atlanta and we were awarded the eglinton crossword crosstown west light rail expansion in toronto under a collaborative contracting model consist consistent with our disciplined risk approach. In Australia, we reached financial close of Central West Orana and continued progress in the Western Harbour Tunnel, reinforcing the scale and complexity of our platform. In Latin America, we advanced flagship projects such as the Line 6 in the Sao Paulo subway grid and expanded our concession portfolio in Peru. Water also made very strong progress with EBITDA growing 50% in the year, driven by the efficient and faster than expected execution of key projects such as the Coyahuasi and Casablanca desalination plants. Coyahuasi in Chile and Casablanca in Morocco. In Brazil, we continue to build a strong platform with the pre-award of the Pernambuco concession alongside additional awards that reinforce the country as strategic market for our water business. Taken together, these results confirm our ability to translate structural demand into delivered complex projects supported by discipline, execution and rigorous risk management. Other businesses also delivered solid progress with Westinberg managing 8 billion in assets supported by positive net inflows and continued progress in the alternative asset portfolio. and top-tier investment performance. In real estate, we continue to rationalize our capital employed, asset classes, and geographical focus while delivering record returns. Silence, while still far from break-even, increased its unit sales by 41% in 2025 and continued to lead its categories both in electric scooters and microcars. Our services business has reached a record level of activity delivering all-time highs in both sales and margin contribution. In an environment of where skilled labor in the Western economies is becoming increasingly scarce and costly, a trend that I expect this will continue to intensify, our services platform will with a workforce of more than 20,000 employees provides a significant competitive advantage serving not only our own projects but also acting as a trusted workforce partner to third parties across multiple sectors and regions. In summary, demand for our assets and for our solutions remains very strong. We operate at the heart of structural trends, supported by an integrated platform, record backlog visibility, and the capabilities required to convert opportunities into sustained long-term value. With that overview, let me now hand over first to the management team of Argena and Recia, followed then by the rest of the group. who will take you through a detailed operational and financial performance of 2025. Thank you very much. Arantxa, please.

Thank you, José Manuel. Good morning. 2025 has been a year of good progress across many fronts, particularly on asset rotation, credit rating protection, and preparing the company for a new and more balanced period of growth. On the less positive side, output has been much lower than expected due to the ramp-up of new capacity, lower wind resources on markets, and some asset rotation deals closing ahead of schedule. This has translated into ABDA from operation somewhat below our initial targets. The priorities we set for 2025 were aligned with our strategic adaptation announced in early 2024 around a more flexible and sustainable growth pace, asset rotation as a new business and source of funding, and the protection of our investment-grade credit profile. With respect to asset rotation, our target for the period 2024-2025 was to deliver €3 billion of disposals in total. In 2025, the objective was to complete the sale of the hydro assets to Endesa signed at the end of 2024 for around 1 billion euros and agree and complete another 1.5 to 1.7 billion euros worth of additional transactions. All of this was oriented towards reducing our leverage and stabilizing the credit ratios within investment-grade threshold, as well as generating significant P&L gains and show through the value of our asset base. In 2025, we signed incremental transactions worth €1.9 billion, two of which will close in 2026. Overall disposals completed during the year amount to approximately 1.8 billion euros, including the sale of the hydro assets on the sand signed at the end of 2024. The impact on our headline net debt was 1.1 billion euros when we take into account the debt that was already classified as held for sale at the end of 2024. EBITDA from asset rotation in 2025 amounted to just over 600 million euros. All in all, that is 3.2 billion euros of disposal during the last two years, generating approximately 900 million euros in total gains. The only caveat is that the US-Mexico transaction with Mexico infrastructure partners and the sale of our interest in our two South African operating assets will close in 2026. The timing of these two transactions has resulted in net debt at year end not fully reflecting the huge effort made on the asset protection front. Both rating agencies, EBRS and Fitch, maintained their investment grade ratings. This was another key target for the year. Still, Fitch moved its outlook from stable to negative, reflecting the delay in materializing the disposal proceeds and the somewhat weaker cash flow due to the low output. This is something we will address in the current financial year. The other key chapter in our priority list was the addition of close to one gigawatt of new capacity during the year and the commissioning of approximately two gigawatts of capacity constructed the year before, reducing our work in progress. Here, we installed 532 megawatts of new capacity, having decided to put on hold the construction of two U.S. battery storage projects representing 400 megawatts and which were expected to add 350 megawatts in 2025. Key highlights here include the completion of Taibilla, our second wind repowering project in Spain, the construction of our 50 megawatt biomass plant Logrosan, the completion of Aldoga PV in Australia, 40 miles wind in Canada, and progress in the construction of Pedro Corto in the Dominican Republic. We are somewhat down on our adjusted target of 600 megawatts of new capacity a year without the U.S. battery projects due to this lower progress on Calion II in the Philippines and Pedro Corto in Dominicana. On the commissioning side, the ramp-up phase has proven more complex and difficult than expected, particularly in McIntyre, The initial contribution from these assets has fallen significantly short of our expectations as a result. We have faced technical problem in some assets like marking tar 40 miles and a 40 transformer at Juna in India and several climate related events. Most issues have been already resolved and we will work through the rest over the course of 2026. Commissioning of the Logrosan Biomass Plant is under way and Marking Tar is undoubtedly our biggest task for the year. Marking Tar has been going through the complex Australian grid compliant process with many whole points to pass and recently, blade issues have surfaced that we believe are related to damage caused during transport. We have already started to repair the first case of blades while we continue with inspection across the wind farm to assess the full extent of the problem And we are also developing a recovery plan and our objective would be to commission the plant in full by year end. In summary, the slow ramp up together with the low wind resorts in some markets and the closing of asset rotation transactions ahead of schedule have resulted in consolidated production of 24.4 terawatt hours and EVGA from operations below our target, even if average capture prices of 62 euros per megawatt hour were higher than expected thanks to Spain. The very healthy level of capital gains from asset rotation of more than 600 million euros has resulted in satisfactory total EBITDA above 1.5 billion euros within the range we set at the beginning of the year. Finally, in our priority list, we also wanted to secure a good set of development opportunities to fuel our growth in 2026 and provide as much visibility as possible for 2027. We think 2025 has been a good year for us on this front with 1.3 gigawatts of projects under FID, with FID under construction already or soon going into the construction phase. On the next slide, you can find a summary of the main asset rotation figures for the period 2025 for your reference. Let me move to the next slide. In this slide, we have laid out where we see the main opportunities and priorities for the year. On the opportunity side, we see a gradual acceleration in our growth with around 700 megawatt of expected capacity additions in the year relative to the 500 megawatts the year before. This is part of the current batch of projects with FID currently under construction or about to start, which add up to over 1.3 gigawatts of capacity to be installed this year and next. During the last few months, we have been revisiting our pipeline and re-evaluated our development strategy. I will cover the new development strategy in some delay in a minute. On the priorities, a key objective for the year is to regain our stable outlook with fixed ratings, and we have the next 10 months or so to achieve this target. Critical for this objective is to close the transactions that were announced at the end of 2025, the US-Mexico deal and the sale of the South African assets, but also signing and closing an additional one around 1 billion euros of disposals, taking the total debt reduction from rotation to around 2 billion euros. We're going to put a strong focus on the delivery of the project and the construction on budget and schedule. The full commissioning of McIntire and other assets like Logrosan are very high on our priority list. With respect to Southeast Asia, we acquired the majority of the blue circle last summer and our key focus is on the Philippines with two assets under construction and a development pipeline including offshore wind awaiting fall coming up options and PPS opportunities. We are constructing wind in Thailand and facing regulatory challenges in Vietnam. Efficiency is also an important part of our focus in 2026, with a plan to cut corporate overheads in a material way. We are also re-evaluating some of our non-generation businesses from a strategic and financial perspective, apart from the new plans that we have for the energy services activity. We are also considering selected opportunities to invest in battery storage. In Chile, we are about to start construction of the Malgarida 200 mW 5 hours battery and have the rest of our PV plants to consider hybridizing with returns that look very attractive given the reduction in the battery storage capacity cost and the night and day price differentials and capacity pavements and curtailments faced in the north of Chile. On the repowering, we continuously review the older sections of our asset sheet for opportunities without straying from our core and distinctive life extension strategy. In the next slide, I want to briefly talk about the streamline of our development pipeline and our new strategy for the development activity. With respect to the pipeline, we have optimized our development pipeline to 20-20 gigawatts. It builds upon high quality of projects, geographical and technology diversification, and aims at preserving ample flexibility to allow to quickly changing trends in markets and growing renewable energy saturation. This pipeline, we believe, is an excellent base from which to build upon under new strategy for development activity. Our aim is to attain a level of 1.8 gigawatts of investment opportunities per annum over time, whether these opportunities are for our own book or for third parties. This should allow for ACCIONA Energia to extract full value from its development footprint and expertise and provides the opportunity to maximize early stage development and greenfield opportunities independently of ACCIONA Energia investment capacity or strategy at any given time. And besides, if we have more capital, we can fully utilize this development capacity for ourselves. In the next slide, You can see the projects that we will be delivering capacity during 2026 and support for the growth acceleration beyond 2026. These projects total 1.3 gigawatts and have obtained FID with a strong return expectations at the upper part of our spread over WAC thresholds. We've at high times succeeded in recent government auctions in Italy and the Philippines. A 20-year Italian estate contract for differences with no curtailment support the construction of Pan Bianco and Benante PV plants. And the Philippines Green Energy Auction, also with 20-year contracts, will give visibility to Calayan 2 wind projects and Dambantayan solar PV. We have also managed to structure one of the first set of private wind energy PPL days in South Africa, which recently completed a lengthy and complex financial process. The Promina PV plant in Croatia is starting its construction and is supported by a government 12-year PPA award at the 2024 auction. In the Dominican Republic, the Pedro Corto PV plant is underway, also covered by a 15-year PPA with one of the local distribution companies. And finally, we are back to investing in Chile with the 1,000 mWh battery storage project at our Malgarida PV site that I was referring before, which expect to deliver double-digit project returns and an excellent fit within our generation portfolio risk profile in Chile. All in all, without wanting to sound overly optimistic, we detect some improvement in investment conditions for renewable energy, as long as you have the ability to move fast from a market to another and are happy to discard projects that are subpar. We have also renegotiated a number of PPAs related to a project under construction and two development projects, resulting in a satisfactory and balanced outcome for all parties. Challenges remain, this is intrinsic to our business, and we will have to control increasing model price resulting from Chinese changing government policies and constructing some of our price in more complex locations like Southeast Asia. And with that, let me now hand over to Raimundo.

Thank you, Elena. I want to start with our priorities in terms of leverage and credit ratings. In this next slide, We show you our indicative uses and sources of funds for 2026. We expect to generate around half a billion of operating cash flow, and we target proceeds from asset rotation of 2 billion. With CapEx below $1 billion and very limited dividend distribution this year, we target reducing debt by around $1.5 billion, which would allow us not only to protect our ratings, but to return to a stable outlook with Fitch, which, as Arantxa said, is one of the key priorities we laid out for the year. In terms of asset rotation, as discussed, we're expecting to close the South Africa and the joint U.S.-Mexico asset deal during 2026, which will bring around $900 million of incremental debt reduction. And we plan to agree and close another $1 billion or so in new asset rotation transactions during the year. These additional transactions are already in the market, or we are preparing to launch several others to ensure we have good headroom and flexibility to deliver the targeted amounts. We are considering assets both in Spain and abroad across different technologies and transaction structures, whether this is outright sales or minority partnerships. With respect to CAPEX, we estimate it will amount to around 900 million, which compares to 1.4 billion in 2025, which also included a significant next capex, net capex deferrals, including the payment for the green pasture wind farms acquired at the end of 2024. In 2026, there is limited next capex deferral as levels of activity have moderated and investment converges more closely with capacity additions. CAPEX related to projects under construction should be somewhere between half a billion and 600 million or so. This is what is committed. We're budgeting another 200 million or so for new projects for 26 and 27. So this is projects that don't have an FID yet, but we're assuming that we will have FID by year end and start spending some back CAPEX. And this is over and above the 1.3 gigs that we already have committed. And apart from CAPEX related to identified and yet to be approved projects, there is investment in the development pipeline, as well as in energy services, the charging networks, IT and ONM. So let's move to the next slide with the 2025 results highlights. Consolidated capacity fell by 5% from 13.6 gigs to 12.9 gigs with capacity additions of half a gigawatt and asset disposals of 1.25 gigawatts. Revenues are down 4% to 2,925 million, of which 1.5 billion correspond to generation revenues, which fell 8% year-on-year on lower average prices at 62 euros per megawatt hour. This was down 10% year-on-year. And consolidated output of 24.4 terawatt hours, which is 2% higher than the previous year. Total EBTA reached 1.546 billion. This is 38% higher than the previous year. EBTA from operations is down 11% to 932 million, while EBTA from asset rotation amounted to 614 million. This compares to 73 million in 2024. The rotation gains correspond for the most part to the Spanish hydro and wind disposals completed during the year. Profit attributable to the shareholders of Accion Energia reached 655 million. This is up 83% year-on-year. In terms of cash flow and net debt, net investment cash flow amounted to 372 million, with capex of over 1.4 billion compensated with approximately 1.1 billion of asset rotation proceeds. Net debt stood at just under 4.2 billion. This compares with 4.1 billion at the end of the previous year, with debt associated to assets held for sale at the time of 821 million. These assets have been sold already, and net debt held for sale at the end of 2025 is just 50 million, so there's a very significant reduction in underlying net debt. Moving to the ESG results and highlights for the year. I would highlight that 100% of the CAPEX continues to be aligned with the EU taxonomy. On the environmental side, our scope one and two emissions have fallen by 12%, reflecting in part our efforts to decarbonize our vehicle fleet through electrification and use of HVO. We have avoided also significant new emissions by using HVO in the Logrosan biomass plant, which was firing its boiler to clean and test it. We have also reduced 100% of slag and ashes from our biomass plants. This is the primary source of our waste, and this represents almost 85% of what we did. With respect to social, we are pleased to report no fatal accidents, whether our own employees or contractors, and the frequency index stood at 0.37, which is below a 0.4 target for the year. On the next slide, on summary of investment, you can find the detail of our investment during the year, 1.4 billion as we discussed, including 505 million of net capex deferrals, including the price for the green pastures wind farms acquired the previous year, as well as the tail end of payments for projects such as Aldoga, 40 Miles, and McIntyre. Investment has been concentrated in North America, Also in Australia, Aldoban MacIntyre as mentioned, the Tavilla and repowering in the Logos and biomass plants in Spain. And elsewhere, we have the Juna plant in India and Calion 2 in the Philippines, as well as the acquisition and consolidation of the other half of the Blue Circle joint venture in Southeast Asia that we didn't know. On the next slide, with the net debt evolution, with respect to the cash flow movements that drive net debt, here we show operating cash flow of 373 million, net investment of 372, which is made up, as discussed, of 1.1 billion of net disposal proceeds and 1.4 billion of capex. Dividend last year amounted to 143 million and all of this resulted in 4.2 billion of net debt at year end. It's important to highlight the reduction in debt associated to work in progress, which stood at 1.8 billion at the end of 25. And here McIntyre represents around 1.1 billion of work in progress and Logrosan plant, which is being commissioned right now, this is another 190 million. So as these assets come online, we expect a significant reduction, a further significant reduction in work in progress. Moving to the operating results of the Spanish and international fleets, starting with Spain. In this slide, you can find the revenue drivers for the Spanish business. Volumes fell by 24%. This is mostly the result of the hydro asset disposal in late 2024. and early 2025. Disposals in Spain detracted more than 2.2 terawatt hours of output, and we also had lower wind resource, which meant a reduction of 0.5 terawatt hours relative to where we should have been. Merchant output represented 165 gigs of total consolidation production. In terms of prices, the average recorded price amounted to 76.7 euros per megawatt hour. This is flat year on year and higher than we expected initially. We had particularly good covariance in 2025, including very high capture prices in the hydro output while we had disasters with us and also in the wind perimeter. And also the regulatory accounting contributed more than expected, including some 20 million of positive one-offs in the banding mechanism. You can see that hedging is less of a driver as our short-term and long-term hedges have converged to prices more consistent with the current power price environments. Whereas last year in 2024, we still benefited from short-term hedges closed in the tail end of the energy crisis at more than 90 euros per megawatt hour. In the next slide, with the Spanish operating results, revenues in generation fell by 24% to $648 million. In this slide, you can see generation EVTA of $341 million down 26.6%, and total EVTA from operations at $327 relative to $443 million the previous year. In the chart, you can see how EVTA was impacted primarily by the loss of output and contribution from the large asset disposal transactions, and to a lesser extent by the lower output on a like-for-like basis. Including asset rotation gains, EVTA in Spain reached 933 million, which compares against 504 the previous year. On the next slide, on the international revenue drivers, output increased by 26% to almost 16 terawatt hours, principally due to new capacity in operation, which added 2.6 terawatt hours of production. And this is some improvement in output as well in the existing operating asset base during the year. Key growth assets include 40 Miles, Green Pastures, Union, and Retail Hawk in North America. This is the region which shows the largest increase in output, and McIntyre and Aldogan Australia, which increased its output by more than 80%. In terms of prices, average capture prices fell by 12% to 54.1 euros per megawatt hour, with lower prices in most regions, particularly the U.S. and Australia, which saw very high prices in 2024. The underlying performance of Chile is very good. As last year, the average price contained extraordinary recovery of PEC or PEC tariff deficits for around $40 million embedded in that price. So the underlying performance is quite good, actually. International generation revenues increased 10% by 862%. And on the last slide in the Acton Energia section, international operating results, generation EBITDA increases by 5.6% to 605 million, better output and contribution from the new assets, and we have negative impact from effects. In terms of the key geographies that are notable, we have the U.S. which grows on the large increase in new capacity, and that is despite the lower prices. Mexico grows on better prices and output, and 2024 production was very weak. Chile has performed well, again, taking into account the extraordinary PEC revenues of $14 million the previous year. Output was poor, but we have seen better PPI margins and slightly higher injection prices in PV. Australia improves thanks to the large increase in volumes and despite lower prices, but it should have been better. While Aldoga reached COD ahead of schedule, McIntyre was behind us as discussed. And this concludes the review of Acciona Energía operating results, and let me hand over to José Ángel Tejero.